Hey everyone! I'm a traditional software engineer exploring the idea of freelancing on the side or possibly full-time. I'm curious about how freelance developers manage expenses like hosting, domains, and databases for their clients. When I worked in a 9-5, my company covered these costs, but now, I'm not sure how to approach this as a freelancer. For instance, if I charge a flat fee of $1000 for a project and I need to set up the client's domain and database, should I ask them to cover those fees directly? Or is it better to pay for these services myself and then add a monthly subscription fee? I'd love to hear your thoughts and experiences on managing these costs!
4 Answers
Just make sure you have an LLC and a separate business bank account for handling these transactions. Using a business credit card for expenses can help since they’re tax-deductible. This way, you keep everything professional and organized!
If you're interested in generating residual income, setting up hosting on behalf of your clients can be a great option. You can charge them monthly for hosting, maintenance, and services, which can grow into a nice passive income stream.
Charging a monthly fee for hosting and maintenance is a common approach. Many freelancers include those costs in a retainer fee. For fluctuating expenses like AWS, it's typically best for clients to have the billing linked to their accounts or receive a variable invoice. This way, they directly manage their own costs.
Most developers have their clients handle the hosting bills directly. You set everything up, and they take care of the payments. It keeps things simple, especially when starting out. If you plan to offer ongoing support, you might consider charging a monthly fee for that, but generally, it's easier to get clients to pay for their own services right from the start.
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